Chesapeake Energy set back up on the Keep A Stepping Gas Well site east of Lowe’s Farm right after New Year’s Day 2010. The well that Chesapeake is drilling (1H West) will go under Lowe’s Farm as shown in Plat 1 below. Drilling is expected to take 30-35 days and the well will run approximately 7000ft below the surface.
Minerals under Lowe’s Farm HOA will participate in a “unit” called “Keep A Steppin West”. The Plat 1 and 2 show that all lots in Lowe’s Farm as well as some other acreage around Lowe’s Farm totaling 280 acres is included in this unit. Chesapeake Energy and Carrizo Oil formed a partnership to produce the minerals from this unit from an existing Chesapeake pad site known as “Keep A Steppin.” All production from within the unit is split proportionally among the mineral owners in the unit. Thus, even though this first gas well is being drilled on the north-east side of Lowe’s Farm, production is split proportionally regardless of whether the owner lives on Westridge or lives on Rosebriar directly above well 1H.
The shaded lots in Plat 1 (there are 24 of them) indicate the owners that did not sign a gas lease as of September 11, 2009 when the plat was submitted to the Texas Railroad Commission. The list of homeowners in the Keep A Steppin West Pooling Area can be found in the Certificate of Pooling P-12 document below that was submitted to the Texas Railroad Commission on Sept. 11, 2009. All of the documents below are public documents available on the Texas Railroad Commission's website. It’s the Board’s understanding that the Texas Railroad Commission does not require every lot in a unit to be leased before drilling can occur. Chesapeake has received a drilling permit that meets these requirements.
If you didn’t sign your gas lease, Chesapeake has indicated that owners still have an opportunity to contact Woodstone Resources regarding a lease:
Leah Baker Rail Road Commission Documents, 1H West
Woodstone Resources, L.L.C. Plat 1 - Shows Bore Path
7500 San Felipe Street, Suite 475 Plat 2 - Shows Lots In Pooling Area
Houston, Texas 77063 Certificate of Pooling P-12
Phone (713) 706-3090 Unleased Tracts On Sept. 11, 2009
Drilling Permit from RRC
GIS - Wells Near Lowe's Farm (Jan 2010)
When will I start receiving royalty payments? At this time, Chesapeake doesn’t have a projection on this. After drilling, the well still has to be frac’d and a pipeline installed to take gas from the Keep A Steppin Pad site to the existing natural gas distribution system. Neither the frac pond nor the distribution pipeline have been constructed as of January 2010. If you recall, Chesapeake drilled two other wells from this pad site in the first part of 2009 under MISD property, but neither have been frac’d either. Once the wells are frac’d and they start producing, royalty payments will likely begin within 4 months. It is possible that other wells will be drilled under the Keep A Steppin West unit but Chesapeake will not comment on this though, so it could be a number of months or years away if at all.
Posted By Paul Blevins, January 16, 2010
Chesapeake Completes First Gas Well Drilling Dec. 5th
Chesapeake Energy informed the Lowe's Farm Board of Directors that they have completed drilling on their first gas well on the site located next to Lowe's Farm and will move the drilling rig offsite during the weekend of December 6th. Chesapeake had originally planned to drill two wells back to back on this site, but drilling needs elsewhere forced them to move the drilling rig offsite. However, Chesapeake has to drill the next gas well within 120 days in order to comply with their legal requirements. Thus, Chesapeake should be back by mid-April to drill the second well.
Posted By Paul Blevins, December 5, 2008
Chesapeake Gas Well Activities Start Nov. 4, 2008
Lowe's Farm Board of Directors met with a representative of
Chesapeake Energy on October 9th after finding out that
Chesapeake Energy was planning to drill on the gas well site
that Carrizo Oil had received approval on from the City of
Mansfield in the Fall of 2007. Chesapeake Energy holds the
mineral leases on the MISD properties and since those leases
were about to expire on November 12th, Chesapeake needed to
take immediate action to drill before the leases lapsed. As
such, Chesapeake will drill two
wells on the same Carrizo approved pad site starting
November 12th. Homeowners can expect to see a flurry of
activity starting November 4th as Chesapeake moves equipment
in to start drilling by November 12th. The access road to
the drill site will connect with Broad Street directly
across from the Inglesia church next to Lowe's Farm. The
road will run right next to the Danny Jones property line
and the drill site is located behind the tree line that you
can see as you drive along Broad Street in front of Lowe's
Farm. See the attached
Chesapeake Site Plan that shows the drill site in
relation to the tree line and Lowe's Farm or the original
site plan that was submitted to the City of
Mansfield for the drilling permit.
Click here for full Chesapeake Presentation to Lowe's
Farm Board of Directors or
click here for a link to Chesapeake's Mansfield, Texas
home center page for current drilling status information.
Will Carrizo rescind any unsigned leases with Lowe's Farm homeowners?
The Board has
no information on this to comment.
What can I do if I have already signed my gas lease?
If you lease is already signed, it's simply a waiting game to see if drilling will occur before your lease expires. If the Fall of 2011 arrives and no gas wells have been drilled under Lowe's Farm, then most homeowner's gas leases will expire then. The Board would likely look at representing the community as a whole to various energy companies similar to how many other neighborhoods have joined together over the past year to obtain better leverage on signing bonuses. But this is several years away and a lot can change between now and then.
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Posted By Paul Blevins, President of Lowe's Farm HOA, October 22, 2008
Woodstone Resources, LLC Contact Information
If you have questions
about your existing mineral lease, or you would like to find
NOTE: While the HOA
Board is in support of Woodstone Resources LLC and has
City of Mansfield Approves Drill Site
The Surface Use Permit for the Gas Well that is
related to the leases many resident's of
CITY OF MANSFIELD
Legislative File Number 07-0434 (version 1)
for Gas Well Drilling and Production on Approximately 10.13 Acres on Property Located at 3800
East Broad Street; Carrizo Oil & Gas (ZC#07-010)
Land Use Plan.
The proposed drill site meets the minimum
required setback from the nearest residential
The applicant plans to drill up to eight wells
at the rate of one well every two months. Vehicular
The site plan and accompanying data has been
reviewed by the Planning, Engineering and Fire
If the SUP is approved by City Council, the
applicant must also obtain a Gas Well Permit and be
The Planning and Zoning Commission held a public
hearing on July 2, 2007 and voted 5 to 1 to
Felix Wong, Director of Planning
See information above.
To consider the subject request for Specific Use Permit.
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